Between 2006 and 2020, the world is expected to reach a peak in oil production where world demand for oil resources will be greater than the world's available oil supplies. Learn about oil and natural gas depletion and what that means for the global economy and our way of life in the United States.

Tuesday, March 14, 2006

U.S. Army Acknowledges Peak Oil

The following report offers additional evidence (click here for conclusions from the Hirsch report commissioned by the U.S. Department of Energy) that our government is aware of peak oil (where demand for oil becomes greater than the supply of oil). The public deserves to be educated about it consequences and have a say in how we should go about trying to mitigate the effects of peak oil. Please do not continue to let our political leaders talk around the issues and mislead Americans on such a crucial topic.

Here's a few excerpts from a report entitled "Energy Trends and Their Implications for U.S. Army Installations" produced by the U.S. Army Corps of Engineers in September 2005:

"Throughout the 20th Century, the United States has been a profligate energy consumer. The rapid and expansive growth of the economy was based on cheap and abundant energy. Little thought and planning have been given to how to transition to the realities of the 21st Century when petroleum and natural gas resources will become depleted. The U.S. economy uses 50 percent more energy per unit of GDP than the other developed nations of the world (EIA 2004). The fossil fuel-based, automobile-centered, throw-away economy is not a viable model for the United States or the rest of the world over the long term. It is not sustainable..."

"Future availability of customary energy sources is problematic. Domestic production of both oil and natural gas are past their peak and world petroleum production is nearing its peak. Growing domestic consumption will continue to increase dependence on foreign and potentially unstableenergy sources. Almost half of the existing U.S. natural gas reserves are considered to be either remote or stranded, i.e., they are too far from existing infrastructure, located on restricted. Federal lands, or considered too environmentally detrimental to harvest..."

"The oil market will remain fairly stable, but with steadily increasing prices as world production peaks. Demand now exceeds production and we are seeing that effect on prices. After the peak is reached, geopolitics and market economics will result in significant price increases above what we have seen to date. Security risks will also rise. To guess where this is all going to take us is would be too speculative. Oil wars are certainly not out of the question..."

"In conclusion, we are clearly entering a very different period for global energy markets and relations. We shall continue to face geopolitical risks and uncertainties and concerns around energy security will continue to rise. Petroleum will remain the most strategic and political energy commodity with natural gas running a close second. There will be increasing focus on sustainability and potential constraints of our current energy paths—especially in light of climate change, investment requirements, and resource depletion. The situation is particularly acute in the case of petroleum..."

"One thing is certain: it is going to be challenging and comprehensive approaches to energy issues are required. Uncertainty cannot be an excuse for inaction. Integrated resource planning is required and issues must be addressed from both the supply and demand viewpoint. The U.S. cannot drill its way to energy independence nor can we do it all with renewables and efficiency. A secure, reliable, and cost effective energy system must be robust, diverse, and aggressively incorporate renewables, energy efficiency, and intelligent use of fossil fuels..."

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What does the U.S. Army Corp of Engineers do?

- Planning, designing, building and operating water resources and other civil works projects (Navigation, Flood Control, Environmental Protection, Disaster Response, etc.)- Designing and managing the construction of military facilities for the Army and Air Force. (Military Construction)- Providing design and construction management support for other Defense and federal agencies. (Interagency and International Services)